Withdrawals from Binance Subside Following $4.3 Billion Settlement

Net Inflows of Ethereum Deposits, but Multichain Tokens See Net Withdrawal

After reaching a $4.3 billion settlement with the United States Department of Justice, Binance, the popular crypto exchange, has seen a significant decrease in withdrawals. Data from blockchain analytics firm Nansen reveals that Binance experienced a net inflow of $87.4 million in Ethereum token deposits over the past seven days. However, multichain tokens, including Ether (ETH), BNB (BNB), Avalanche’s AVAX (AVAX), and Polygon’s MATIC (MATIC), saw a net withdrawal of $59.2 million during the same period. It's worth noting that immediately after the settlement news broke, Binance users withdrew more than $1 billion from the exchange.

Overall Balance: Withdrawals vs. Deposits

Despite the initial rush of withdrawals, Binance users have withdrawn a total of $7.62 billion from the exchange. However, they have also deposited $7.56 billion in digital assets, according to Nansen data. Therefore, the balance between withdrawals and deposits remains relatively stable.

BNB Value Remains Steady

The value of BNB, the official token of Binance’s BNB Smart Chain, has remained largely unchanged in the past month, with a value of $227. This stability in BNB's value suggests that investors have maintained confidence in the token despite recent events.

Leadership Changes at Binance

Following the settlement, Changpeng Zhao, the former CEO of Binance, resigned from his position. He also stepped down as the chairman of the board of directors of Binance.US on November 29. As part of the settlement, Zhao pleaded guilty to money laundering and now faces a potential prison sentence of 18 months to 10 years, depending on how federal sentencing guidelines are interpreted. The sentencing is scheduled for February 2024.

In the wake of Zhao's departure, Richard Teng, the former global head of regional markets at Binance, has been appointed as the new CEO. In his first blog post in this role, Teng expressed his commitment to the potential of blockchain technology and its ability to enhance financial inclusion, facilitate cross-border remittances, and reduce transaction costs. He also emphasized the importance of individuals having control over their personal data.